|
The Stability Scope governs the management of the USDS Stablecoin. The USDS Stablecoin must be a permissionless and useful currency available to anyone. Its stability and risk must be managed to generate as much value for Sky and public good as possible.
This Article defines rules pertaining to Sky’s Collateral Portfolio, which consists of several different assets to ensure liquidity.
This Section governs the management of Sky’s Collateral Portfolio.
A Peg Stability Module (”PSM”) allows users to swap a given collateral type directly for Dai or USDS at a fixed rate, rather than borrowing Dai or USDS. The PSM contract was designed with Stablecoin collateral in mind, allowing users to swap other Stablecoins for Dai or USDS at a fixed rate to aid with keeping Dai or USDS pegged to one (1) USD.A PSM operates similarly to a regular vault type with a zero Stability Fee and a liquidation ratio of 100% that can only be accessed through a user-facing smart contract containing the relevant swap functions. Unlike regular vaults, users of the PSM do not retain ownership of the asset and borrow Dai or USDS. Instead, PSM users swap the asset directly for Dai or USDS.